Semi-weekly south Kentuckian. [volume] (Hopkinsville, Ky.) 1883-1889, 1887-04-26
Intsrrupting Commerce.

ter-state commerce law gave TO the
Commissioners power TO suspend the
prohibition of greater charge for a
short than for long haul. Unfor-
tunately for the country, its business
interests are so little represented in
Congress that the members of that
body seemed entirely ignorant of the
effect of such prohibition.
Because the railroads have made
rates to meet water competition, and
because, going beyond this, they have
extended competition TO territory the
water lines do not reach, we have on
this continent the most economical
and the most serviceable system of
transportation of any nation in the
world.
The failure to understand the val
ne of this competition led TO the pas
sage of the interstate commerce law.
Few Congressman and few newspa-
pers understood that the railroad
pools did not destroy competition,
and that the low rates on wheat to
Liverpool, or on cotton TO Manchester,
were due 10 higher law than one
under the control of American rail
roads. They did not and do not yet
understand that final competition is
not between one road and another, or
even Between one place and another
but that il is between one product
and another product, or between
American cotton and Egyptian cot
ton, or between Australian wool and
the wool of California. Mr.. Edward
Atkinson, in an interview in the Bos-
ton Herald, says, in relation to this
subject: "These low rates have been
brought about not by competition
among the railroads, not by competi'
ton with waterways, but through
the paramount competition of pro-
duct with product in the principal
markets, which has compelled the
enormous reduction in rates in the
last twenty years." And he Illus
trates his meaning by saying the
price at which wheat can be moved
from India or Odessa controls thu
rate at which wheat can be moved
from Dakota or Manitoba.
The Courier-Journal sought to
make plain the other day the princi-
plies which control the making OF
rates by a reference 10 the develop
ment of the mines near Jellico, low
rates being made TO Louisville in or
der to dispose of the surplus above
local demands, in competition with
Pittsburgh coal in its market. Ii
was no single instance, but is one fa- |
miliar to all traffic managers. The
situation is the same with the mines
on the Henderson division of the
Louisville and Nashville road. IL
order 10 fully develop the mines in
that locality the coal, or large part
of il, must be carried 10 some distant
market; Memphis, for instance. II
the mIne-owners were shut out OF
that market they could not operate
the mines with any regularity, and
they could not be justified in any
further development of that locality |
But in Memphis they come in com
petition with coal from Pittsburgh |
brought in barges at merely nomi-
nal cost In order to put Kentucky |
coal in that market at the same price |
of Pittsburgh, it IS necessary to haul |
the coal by rail go miles. One cent
a ton a mile, which ordinarily is con-
sidered a very low rate, would make
the cost for transportation 1910,
which would be prohibitive ;thatis, il
would make the cost of Kentucky
coal in Memphis so high that none
could be sold. As IL is, the local sta.
tions, though not getting coal at
Memphis rates, are getting it much |
cheaper than formerly, when they |
had TO buy it in Memphis and haul il
by rail back say 10 Paris, 1876 miles |
These local stations, If the mines
could be operated continuously and
therefore more economically, would
be certain of constant supply al
reasonable rates; so it is manifcstly
to the interest of the mine owners,
of the miners and Of the local con-
sumers at Paris and other stations
that the Kentucky coal shall find an |
outlet or new market at Memphis. |
The rate TO Memphis is fixed not by |
the railroads, but by the price OF
Pittsburgh coal in that market. The
roads must name rate that, added
to the price of the coal at the mines,
will make the price in Memphis no
greater than that of the article from
Pittsburgh, and so, though the ordi-
nary rate from the mines TO Paris, 1856
miles, is $l.75 per ton, the rate to
Memphis, go miles, is ,$l.35 per ton.
1t is due to the paramount competi-
ton ofproduct with product, which,
as Mr.. Atkinson has well said, is "the
higher law of transportation"
The fourth section of the inter-
state commerce law would compel
the railroads 10 reduce the rate TO
Paris $.35, or to advance the rate TO
Memphis TO $175. Without question
the rate to Memphis would be adj
vanced, and competition between
Kentucky coal and Pittsburgh coal
would cease.
The Courier-Journal pointed out
all this in advance. IL showed, more
over. that the new law, instead of
the consolidation of rail-
road lines, or OF railroad lines with
other commercial organizations,
would hasten such movements. The
truth of the position is receiving sig
nal confirmation in New York. The
New York Evening Post, in refer !
ring to the matter, says;
"Before the law was passed some {
Of the coal lands were owned by rail-
roads, and the rest by Independent
parties. The owership of coal lands
had not been specially profitable
line Of business, and the roads did
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